Problem 13-16 Net Present Value Analysis (LO13-2] points Windhoek Mnes, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the company has mineral rights. An engineering and cost analysis has been made, and it is expected that the following cash flows would be associated with opening and operating a mine in the area: 2 Cost of new equipment and timbers Working capital required Annual net cash receipts Cost to construct new roads in year three Salvage value of equipment in four years $ 155, eee $ 170, cee 51.000 *Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, and so forth The mineral deposit would be exhausted after four years of mining. At that point, the working capital would be released for reinvestment elsewhere. The company's required rate of return is 18% Click here to view Exhibit 138.1 and Exhibit 130 2. to determine the appropriate discount factors) using tables Required: a. What is the net present value of the proposed mining project? b. Should the project be accepted? Complete this question by entering your answers in the tabs below. Required A Required What is the net present value of the proposed mining project? (Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount.) Not present value RA Required 8 > EXHIBIT 13B-1 Present Value of St . Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 O BAS 0.877 0.870 0.862 0.855 0 847 0 840 0.833 0.826 0.820 0.813 0.806 0.800 2 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 0.683 0.672 0.661 0.650 0.640 3 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0712 0693 0675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0.512 4 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0636 0613 0 592 0572 0.552 0534 0.516 0499 0.482 0.467 0.451 0.437 0.423 0.410 5 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 0.386 0.370 0.355 0.341 0.328 6 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.319 0.303 0.289 0.275 0.262 7 0.760 0711 0.665 0.623 0.583 0547 0 513 0482 0.452 0425 0.400 0376 0354 0.333 0314 0296 0.279 0.263 0249 0235 0.222 0.210 8 0.731 0677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0351 0327 0.305 0285 0 266 0249 0233 0.218 0204 0.191 0.179 0.168 9 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0284 0263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 10 0.676 0.614 0.558 0.50B 0.463 0.422 0.386 0.352 0.322 0.295 0 270 0247 0.227 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 11 12 13 14 15 0.650 01585 0.522 0.475 0.429 0.388 0.350 0317 0.287 0 261 0.237 0215 0.195 0.17 0.162 0.148 0.135 0.123 0.112 0.103 0.094 0.086 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0 286 0 257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.102 0.002 0.003 0.076 0.069 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0258 0.220 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0093 0.084 0.075 0.068 0.061 0.055 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0232 0.205 0.11 0.160 0.141 0.125 0.111 0.099 0OBB 0.078 0.069 0.062 0055 0.049 0.044 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065 0.057 0.051 0045 0.040 0.035 16 17 18 19 20 0534 0.458 0.394 0339 0.292 0.252 0.218 OB 0.163 0.141 0.123 0 107 0003 OOR1 0071 0062 0.054 0.047 0.042 0.035 0.022 0.028 0.513 0.436 0.371 0317 0270 0.231 0.19 0.170 0.146 0.125 0.108 0.093 0.OBO 0.059 0.060 0,052 0.045 0.039 0.034 0030 0026 0.023 0.494 0.416 0 350 0296 0.250 0.212 0.10 0.153 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0.038 0.032 0.028 0024 0.021 0.018 0.475 0.396 0 331 0227 0232 0.194 0 164 0.138 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031 0.027 0023 0020 0017 0.014 0.456 0377 0312 0258 0215 0.178 0.149 0.124 0.104 0.087 0.073 0061 0.051 0.043 0.037 0.031 0.026 00220 019 0016 2014 0.012 21 22 23 24 25 26 0.439 0.359 0294 0242 0 199 0 164 0.135 0.112 0.093 0.077 0.064 0.053 0.044 0.037 0.031 0 026 0022 OOIB 0015 0013 0011 0009 0.422 0.342 0278 0226 0 114 0 150 0.123 0.101 0.083 0.068 0.056 0.046 0.038 0.032 0.025 0.022 0.018 0015 0013 0011 0009 0.007 0.406 0.326 0262 0.211 0.170 0.138 0.112 0091 0.074 0.060 0.049 0.040 0.033 0.027 0.022 0.010 0015 0.012 0.010 0.000 0.007 0.006 0.390 0.310 0247 0.197 0.158 0.126 0.102 0.002 0.066 0.053 0.043 0.035 0.028 0.023 0.019 0.015 2013 0010 O OOR O 007 0006 0.005 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.074 0.059 0.047 0.038 0.030 0.024 0.020 0.016 0.013 0.010 0.009 0.007 0.006 0.005 0.004 0.361 0.281 0.220 0.172 0.135 0.106 0084 0.066 0.053 0.042 0.033 0.025 0.021 0.017 0.014 0.011 0.000 0.007 0.006 0.005 0004 0003 0 347 0.268 0.207 0.161 0.125 0.098 0076 0.000 0.0-47 0.037 0.029 0.023 0.018 0.014 0.011 0000 0002 0006 0.005 0004 0.003 0002 0.333 0255 0.106 0.150 0.116 0.000 0.069 0054 0.042 0.033 0.026 0020 0,016 0012 0.010 0000 0006 0.005 0.004 0.003 0.002 0.002 0321 0243 0.185 0.141 0 107 0082 0063 0048 0.037 0.029 0022 0.017 0.014 0.011 0.008 0.006 0005 0.004 0.003 0.002 0.002 0.002 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0.044 0.033 0.026 0.020 0,015 0,012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.015 0,011 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 27 PR 29 30 40 EXHIBIT 13B-2 Present Value of an anruty of $1 in Arears: f1-to Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.001 0.893 0.035 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 1.886 1.859 1.833 1.80B 1.783 1.759 1736 1713 1690 1.668 16:47 1626 1.605 1.585 1.566 1.547 1528 1.509 1.492 1.474 1.457 1.440 2.775 2.723 2.673 2624 2577 2531 2487 2444 2.402 2361 2322 2283 2246 2210 2.174 2.140 2 106 2074 2042 2011 1.981 1952 3.630 3545 3.465 3.387 3.312 3240 2 170 3 102 3037 2974 2914 2.855 2.798 2 743 2690 2639 2589 2540 2.494 2.448 2.404 2.362 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3058 2.991 2.926 2.864 2 803 2.745 2.689 4 7 8 9 10 5.242 5.076 4917 4.767 4622 4.4864.355 42214 111 2999 3889 2.784 365 3589 3.498 3410 3326 3245 3.167 3.092 3.020 2.951 6.002 5.786 5582 5389 5.206 503) 4868 4712 4564 4423 428 4.1604099 3922 3812 3706 3 605 3.503 3.416 3 327 3242 3.161 6.733 5.463 6210 5.971 5.747 5535 5.335 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4078 3.954 3837 3.726 3619 3.518 3.421 3.329 7.435 7.108 6.802 6.515 6 247 5.995 5759 5.537 5328 5.132 4,046 4772 4.607 4.451 4.303 4.163 4031 3.905 3.786 3673 3.566 3.463 8.111 7.7227360 7.024 6710 6.418 6.145 5.009 5650 5.426 5 216 5019 4833 4659 4.494 4339 4.192 4.054 3923 3.799 3.682 3571 13 14 8.760 8 206 7887 7.499 71396805 6.495 6 207 5938 5.687 5.453 5 234 5 029 4306 4656 4.486 4 327 4.177 4035 3 902 3776 3656 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6,492 6.104 5.918 5.660 5.421 5.197 4 988 4.793 4 6114.439 4.278 4.127 3.985 3.851 3725 9.986 9.394 8.853 8 358 7.904 7.487 7.103 6.750 6.424 6.122 5 842 5583 5.342 5.118 4.910 4,715 4.533 4.362 4.203 4,053 3.912 3780 10.563 9.999 9.295 8.745 8244 7.786 7 367 6.982 6.628 6.302 6.002 5.724 5.6B 5.229 5 008 4.802 4 611 4.432 4.265 4.108 3962 3824 11.118 10.3809712 9.108 8.559 8.051 7.606 7.191 6,811 6.452 6.142 5.847 5 575 5 324 5.092 4876 4.675 4 489 4 315 4.153 4001 2859 16 17 18 19 20 11.652 10.838 10.106 94423351 8313 7.824 7.379 6.974 6,604 6 265 5 954 5.660 5.405 5.162 4.938 4,730 4.536 4357 4.189 4033 3887 12 166 11 274 10.477 9763 9.122 8544 8022 7.549 7.120 6.729 6.373 6047 5.749 5.475 5.222 4.990 4.775 4.576 4.391 4.219 4.059 3910 12.559 11 690 10828 100599.372 3.756 8 201 7.702 7.250 6.840 6.467 6.128 5.818 5.534 5.273 5.033 4812 4.608 4.419 4 243 4.080 3.928 13.134 12.085 11.158 10.336 9.604 950 8.765 739 7.3666 938 6 550 6.198 5.877 5.5845 316 5.070 4843 4 635 4 442 4263 4097 3942 13500 12.462 11.470 10 594 9818 9.129 8 514 7.963 7.469 7025 6.623 6.259 5.929 5.628 5.353 5.101 4.870 4657 4460 4.279 4.110 3954 23 24 25 14.029 12 821 11.764 10.836 10.017 292 8.649 3 075 7 562 7.102 6687 6.312 5.973 5.665 5.384 51274891 4.675 4.476 4.292 4.121 3.063 16 451 13.153 12 042 11 061 10 201 9442 8772 8.176 7.645 7.170 6.743 6.359 6011 5.696 5.410 5.149 4 909 4 690 4 488 4 302 4.130 3.970 14857 13 49 12 103 11222 10 371 9580 8883 8266 7.718 7.230 6.792 6 399 6044 5.723 5.2 5.167 4025 4 2014090 411 4137 2076 15.247 13.799 12 550 11.469 10.529 9.707 8905 0.348 7784 7283 6.835 6.434 6.073 5.746 5.451 5.182 4937 4713 4.507 4318 4.143 3991 15.622 14094 12 703 11.654 1067508239.077 8.422 7.843 7.330 6.873 6.464 6.097 5.766 5.467 5.195 4,948 4.721 4.514 4.323 4.147 3.985 29 29 30 40 15 9 14375 1300311826 10 310 929 9 161 488 7.896 7 372 6 906 6.491 6.118 5.783 5. 40 5.2004 956 472 4520 4328 4.151 3988 16 14 543 112 11 11 7 10 935 10027 9 237 3548 7943 7.409 6.935 6.514 6.136 5.798 5.692 5 215 4064 47344524 4332 154 3990 16 14.898 1406 12 37 11051 10.116 9.307 B 602 7.984 7.441 6.961 6.534 6.152 5.810 5.502 52234970 479 45 15 157 1992 16.984 15.141 13 591 12.278 11.158 10.198 9.370 3.650 3.022 7.470 6.00 6.551 6166 5.820 5.510 5.229 4.975 4743 4531 4337 4.159 3994 17.292 15 372 13.765 12.400 11.268 10 274 9.427 3.694 8055 7.496 7003 6.566 6.177 5.829 5.517 5.235 4.979 4.746 4534 4339 4.160 3.095 19.793 17.159 15.046 13.332 11925 10.757 9.770 8951 8 246 7634 7.105 6.642 6233 5.871 5.548 5.258 4 997 4.760 4544 4.347 4.166 3999